UBC Real Estate Practice Exam

Which statement is true about charges under the indefeasibility concept?

Indefeasibility extends to charges Indefeasibility does not extend to charges Charges are the primary guarantee Charges are eliminated on registration

Correct Answer:

Indefeasibility does not extend to charges

Explanation:

In a Torrens system, the owner's title is indefeasible, meaning the registered ownership cannot be easily challenged and is protected from most later claims. However, this protection covers ownership, not other interests registered against the land. A charge is a registered security interest (like a mortgage) that encumbers the property to secure a debt. It remains on the title and can be enforced, regardless of the indefeasibility of the owner’s title. Therefore, indefeasibility does not extend to charges. The idea that charges are the primary guarantee or that they disappear upon registration would misstate how the system works, since charges are ongoing encumbrances recorded on the title.

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